The long-term goal of this proposal is to understand the molecular and cellular mechanisms of signal termination mediated by the novel phosphatase PHLPP (PH domain Leucine-rich repeat Protein Phosphatase;pronounced 'flip') that we discovered in the preceding funding period. The central hypothesis driving this proposal is that PHLPP terminates signaling pathways that are turned on by PDK- 1, notably Akt signaling pathways, and that specificity in termination is achieved by subcellular location and macromolecular interactions. 1. Molecular Mechanisms of PHLPP: The goal of this section is to understand the enzymology and biochemistry of PHLPP, a new PP2C family member. Specifically, we will examine the kinetics and substrate specificity of the three PHLPP isozymes, the alternatively spliced PHLPP1 (a and () and PHLPP2, and develop tools for cellular studies in Aims 2 and 3. 2. Cellular Mechanisms of PHLPP: The goal of this section is to understand the mechanisms that control the function of PHLPP in cells. We will test the hypothesis that the PDZ binding motifs of the PHLPP isoforms selectively tether them to specific NHERF PDZ domain proteins, forming a scaffolding network that allows effective control of the amplitude and duration of Akt signaling. We will characterize additional PHLPP binding partners in cells and, using novel imaging technologies, we will measure PHLPP activity in real time in live cells. 3. PHLPP in disease: This aim addresses the role of PHLPP in human cancers. The PHLPP1 and PHLPP2 genes are located on the chromosomal loci reported to be the most commonly deleted in colon cancer and breast cancer, respectively. The function of PHLPP isozymes in controlling the amplitude of Akt signaling poises them as prime candidates to be the elusive tumor suppressors harbored on these loci. To test this, we will screen human tumors for mutations in PHLPP, address the role of PHLPP in cell migration in breast cancer cells, and develop a mouse model to address how genetic deletion of PHLPP could lead to abnormalities in cell survival and proliferation.